Do NOT Buy Houses!

Day 2,436, 09:48 Published in Netherlands Canada by Aries Prime
The Housing Market

I've done some reading and I've done a few quick calculations and analysis to discover that this market will not be profitable. Here is my simple reasoning:

Currently Poland has Housing Raw Materials at .18 (Serbia .15). Let's use that as the price for all raws. Netherlands has 0% bonuses on housing raws. Because of this even at the largest company we can only produce 250 housing raws per worker. Also note that managers cannot work in housing companies. Already you are forced to hire workers. Now let's calculate the wage workers need to be at in Netherlands to break even.

.18*250=45
(35 gold investment for mine)

So after spending 35 gold to build one mine and hiring one worker, you will need to pay a wage less then 45cc per day to earn a profit. Sounds pretty good right? Wrong. Wages are skyrocketing because of the increased demand. They will equalize soon enough, but the huge influx of demand for housing will continue to push these wages up. Poland is at 83cc per worker, UK at 50, even NL has a contract for 56cc up.

I won't even get into the difficulty of keeping workers when wages will be increasing all the time.

What Does This Mean?

Simply put, do NOT buy houses if you are looking for a profit. Netherlands, with 0% bonuses, is a terrible place to invest in this market. Wages are unstable and the prices for housing raws are unstable and seem to be going down. Some good business players might be able to ride the market, but I strongly advise most of you to wait it out.

This is a great time to be a worker. Workers will be making tons of extra cc and should absolutely be picking up new jobs daily. This new housing market has created a huge surge in labor demand and we will see a permanent rise in wages. This is good for workers in the short run, and government permanently. Unfortunately, higher wages across the board will mean higher food and weapons prices, so you best be buying up huge stocks right now.

The only reason to get into this market is if you are a heavy tank with money to spare. The extra health and recovery can be a great thing for heavy hitters with money. That is your only reason to do it.

Feel free to check out this great analysis article for more info:http://www.erepublik.com/en/article/the-economist-updates-on-the-new-housing-module-2417877/1/20

Aries Prime